Mutual Funds

Here are top buys and sells by mutual funds in August when Sensex, Nifty hit record highs

The market continued to be in a consolidation mode for a couple of weeks after hitting record highs at end of August month, weighed by rupee weakness and crude oil price volatility which hit trade deficit, and global trade tensions.

Nonetheless, August was second consecutive month that delivered good returns for investors, though the mutual fund flow slowed down further compared to average of months at the beginning of the year.

That does not mean the domestic flow is weak. In fact, it is still far better than previous years thanks to a consistent increase in financial savings of Indians, experts said.

“The flow in mutual funds have been moderated for the last couple of months compared to the beginning of the year is true, but SIP (systematic investment plan) continued to see good flow and will continue as well,” Harsha Upadhyaya, CIO Equity, Kotak MF said.

Overall the market is still up nearly 11 percent year-to-date despite intermittent correction, on top of 28 percent run last year.

At the end of August 2018, MF industry assets have grown to a record Rs 25.2 lakh crore, of which equity oriented funds constitute 43 percent, debt funds constitute 30 percent and liquid funds constitute 24 percent, ICICI Securities said.

Among large-cap stocks, HDFC AMCSun TV NetworkTVS MotorVedanta and Tech Mahindra topped the August buying list of top 10 mutual fund houses which held a market share of 81 percent of industry assets at the end of August.

JSW SteelHavells IndiaDabur IndiaBiocon and P&G Hygiene were top five stocks where the maximum exposure reduced by funds during the month.

The BSE Midcap index outperformed frontline indices in month gone by, gaining 5.4 percent while the Smallcap index rose 3.6 percent.

In the midcap space, asset management companies increased maximum exposure to Hexaware TechnologiesAU Small Finance BankAdani PortsPNB and Future Retail while stocks saw highest selling by AMCs were Page IndustriesLIC Housing FinanceJubilant FoodworksShriram City Union and ICICI Securities.

In small caps, stocks like Parag MilkMahanagar GasOrient RefractoriesKPIT Technologies and Fortis Healthcare saw highest buying while AMCs reduced exposure to Adani EnterprisesJet AirwaysHEGIDFC Bank and Piramal Enterprises during the month.

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